Tesla (TSLA) closed the latest trading day at $344.46, indicating a +0.52% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq increased by 0.81%.
Coming into today, shares of the electric car maker had gained 22.28% in the past month. In that same time, the Auto-Tires-Trucks sector gained 10.94%, while the S&P 500 gained 4.61%.
The investment community will be paying close attention to the earnings performance of Tesla in its upcoming release. It is anticipated that the company will report an EPS of $0.43, marking a 17.31% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $23.63 billion, indicating a 7.34% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.89 per share and a revenue of $97.06 billion, signifying shifts of -21.9% and -0.65%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Tesla. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.14% lower. At present, Tesla boasts a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Tesla is presently being traded at a Forward P/E ratio of 181.61. This signifies a premium in comparison to the average Forward P/E of 10.14 for its industry.
It is also worth noting that TSLA currently has a PEG ratio of 9.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 218, positioning it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Tesla, Inc. (TSLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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